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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
2nd September 2011
New shape of HSH Nordbank
HSH Nordbank reported a net attributable profit of €337m (£298m $487m ¥37.3bn Y3,105m) for the first half compared with a year ago LOSS of €400m. The turnaround was achieved despite a 19% fall in income. The most significant factor was the reduced loan loss provisions with other help arising from lower costs to the government for guarantees and sightly reduced expenses.
The bank has not yet reached a final agreement with the European Commission with regard to remedies for the state aid received. However based upon 'breakthrough discussions' with the EC and the board's own objectives the bank recently outlined the shape its expects the bank will take in the future. There can be no surprise that one aspect of the new shape is to reduce staff numbers by 900. Other key changes outlined are:
- The total assets of the Core Bank will be limited to €82bn by the end 2014.
- The total assets of the Restructuring Unit, which contains all portfolios and activities no longer forming part of the Bank’s core business, will be wound down to €38bn by the end of 2014.
- Asset-based aviation finance is to be given up.
- Real estate finance outside Germany is to be discontinued.
- Shipping business unit to be reduced to around €15bn by the end of 2014 (in the continuing core bank).
- The Bank will be closing its branches in Amsterdam, Paris and Shanghai, in addition to the previously announced closures.
- To spin off further non-strategic equity holdings.
"The undertakings required by the EU Commission will have a huge impact on our business and represent a major entrepreneurial challenge. The required size of the Bank is a good quarter smaller than originally planned in 2009. This means that the Bank's earnings basis will shrink to a correspondingly drastic degree. At the same time we had to promise the EU Commission that we would not grow significantly in the Bank's core areas of business in the foreseeable future. In other words, under the new underlying conditions our cost base is much too high, with the result that cost cuts and thus also job cuts are inevitable," explained Paul Lerbinger, chairman of the management board (CEO).
The bank followed this announcement with news that it had sold its stake in 47 private equity buyout funds to a syndicate consisting of AXA Private Equity and LGT Capital Partners. No financial details of the transaction were released.
Income statement first half 2011 2010 Change
€m €m %
Net interest income 635 802 -21
Net commission income 61 94 -35
Result from hedging -10 3 --
Net trading income 1 -36 --
Net income from financial investments 164 114 44
Accounted for under the equity method -56 - -
____________________________
Total income 795 977 -19
Loan loss provisions 271 -649 --
Administrative expenses -382 -402 -5
Other operating result 13 -36 --
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Net income before restructuring 697 -110 --
Result from restructuring 2 -14 --
Expenses for government guarantees -211 -303 -30
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Net income before taxes 488 -427 --
Income tax expense -150 -47 --
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Group net income/loss 338 -380 --
Attributable to non-controlling interests 1 20 -95
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Attributable to HSH Nordbank shareholders 337 -400 --